However, this has now been simplified so that all payments in lieu of notice will be taxable regardless of whether they are contractual or not.

Employers should ensure that no payments in lieu of notice made on or after 6 April 2018 are treated as non-taxable.

Increases to statutory family pay and statutory sick pay

1 April 2018 will see the weekly rate for statutory maternity, paternity, adoption and shared parental pay will increase to £145.18. Statutory sick pay will also increase to £92.50 from 6 April.

Other changes to look out for in 2018

In 2017, a number of cases involving the gig economy hit the headlines with individuals challenging their worker status.

The government responded by commissioning the Taylor review of modern employment practices which was published last year. This has led to the government launching four consultations, one of which is related to the issue of employment status.